Diversified Communications to sell TV stations to Gray Television

Diversified Communications in Portland announced Thursday the planned divestiture of its television stations WABI in Bangor and WCJB in Gainesville, Fla., to Gray Television Inc. pending FCC approval.

Terms of the deal were not disclosed.

"This was a very difficult decision by our board of directors, but we feel it is the right one," Daniel Hildreth, chairman of Diversified's board, said in a company announcement. "We believe that under the ownership of Gray, WCJB and WABI will have greater opportunities for long-term financial success which will ultimately benefit both our employees and viewers."

Gray Television (NYSE: GTN) owns and/or operates 100 television stations across 54 television markets that collectively broadcast over 200 program streams, including 101 channels affiliated with the CBS Network, the NBC Network, the ABC Network and the FOX Network. It is based in Atlanta.

"We are honored to be selected by Diversified as the new owners of legacy stations WABI and WCJB," said Hilton H. Howell Jr., Gray's chairman and CEO, in a statement accompanying the announcement. "Both stations are highly valued institutions in their respective communities with dedicated employees who share our vision and culture. We look forward to building upon these strong foundations and enviable records of success."

Wells Fargo Securities LLC served as financial advisor and Sullivan & Worcester LLP served as legal counsel for Diversified Communications.